Accounts Receivable

Accounts receivable are amounts owed to the business from customers. Credit is extended by the owner to entice the sale of the product or service provided. Customers typically have 30 days to pay the amount due. Some customers are extended additional time to pay based on their history etc.

Create a File Structure for Accounting

File Structure for Accounting

Creating a file structure for accounting is critical for the overall success of the business. If properly structured, data retrieval and information access add to the overall value of the company. This article teaches the new business owner how to create a file structure to use with accounting.

The primary goal of creating a file structure is to make data retrieval easy and understandable by just about anyone involved in office operations.  Keep in mind that the end user is how the structure is developed.  From a simple format to a more complicated structure incorporating the entire office, the file structure should be organized in a systematic approach.  First, break down the accounting function into the respective areas of importance.  Next, subdivide these areas by accounting cycles.  Finally, incorporate the accounting software function and the overall office to end up with a well-organized file structure for the company.

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